EXCLUSIVE RIGHT TO PUBLISH, PROMOTE AND DISTRIBUTE INTERACTIVE SOFTWARE GAME

 

                                                                   EXHIBIT 10.48

 

 

December 17, 2004

 

 

Majorem Ltd:

6 Maklef st., Holon 58672

Israel

 

Gentlemen:

 

         This letter agreement shall represent a legally binding  agreement (the

"Agreement") by and between Majorem Ltd ("Majorem") and Interplay  Entertainment

Corporation  ("Interplay")  pursuant to which Majorem hereby grants to Interplay

the sole and exclusive  worldwide  right,  outside of the country of Taiwan,  to

publish, promote, distribute and otherwise exploit the interactive software game

known  as  "Ballerium"  (the  "Game")  on the  PC.  Interplay  shall  also  have

prequel/sequel  rights. The term of this Agreement shall commence on the date of

the full execution of this Agreement and shall continue for the economic life of

the product. Majorem shall have audit rights customary in the industry, upon ten

days  written  notice and  limited  to one audit per  fiscal  year with at least

twelve months between each audit.  Interplay may sublicense or assign its rights

to a third  party  without the  express  written  consent of Majorem and Majorem

hereby consents to such  sublicenses and  assignments.  All rights not expressly

granted to Interplay  under this  agreement  are reserved to Majorem  and/or its

respective licensors.

 

         In  consideration  of the grant of rights  described  above,  Interplay

shall pay to Majorem a fully  recoupable  advance in the amount of $300,000 (the

"Advance") in United States currency as set forth below.  Interplay shall pay to

Majorem  $300,000  within 90 days of signing this Agreement (the "Initial option

period").

 

         Interplay  shall,  at its own  discretion,  pay the  Advance in twice a

month installments of no less than $20,000 (the "Installment") each. The Initial

option  period  shall be  extended  by 15 days upon  receipt  by Majorem of each

Installment  payment.  The first $20,000 Installment will be made within 45 days

from signing this Agreement.

 

         Upon payment of the first Installment,  Majorem will resume development

of the Game and reinstate the online Beta testing allowing consumers to download

the game and play it by accessing beta testing servers provided by Majorem.

 

         If Interplay fails to pay the full $300,000 advance as prescribed, then

all rights  granted to Interplay  under this  agreement  shall revert to Majorem

and/or its  respective  licensors,  at which time  Interplay will only retain an

interest in the Game up to the amount of all Installments it will have paid.

 

         Interplay will provide the commercial servers,  hosting allowing online

access to the game,  billing and access  customer  service  while  Majorem  will

provide all game content and in-game  customer  service.  Interplay  agrees that

Majorem's  name  will be used in all  publications  made in  conjunction  to the

product, including prompt labeling of any media carrying the product.

 

         Following  payment by Interplay of the Advance,  Majorem  shall receive

the following additional royalty payments (the "Royalties")  associated with the

exploitation of the game:

 

         Twenty  percent (20 %) of Interplay's  Net Retail  Receipts (as defined

below) from all sales and  distribution  licenses of the Game.  For  purposes of

this Agreement,  "Net Retail  Receipts"  shall mean the gross receipts  actually

received  and earned by  Interplay  from sales or  distribution  licenses of the

Game, less the following amounts:

 

         (i)      Any applicable taxes on the sale or license of the Game;

 

 

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         (ii)     Amounts reimbursed by customers such as insurance or shipping;

 

         (iii)    Any cash discounts, freight discounts, mark down allowances or

                  marketing funds required from customers;

 

         (iv)     Any commissions and/or  distribution fees that must be paid in

                  conjunction with the sale or license of the Game;

 

         (v)      Amounts for returns, such as credits or refunds;

 

         (vi)     Currency exchange fees incurred by Interplay;

 

         (vii)    No royalties to be paid on Product furnished by Interplay on a

                  so  called   "no   charge"   basis  as  demos  to  dealers  or

                  journalists;

 

         (viii)   With respect to direct sales, all out of pocket costs, such as

                  telephone charges and fulfillment costs;

 

         (ix)     A marketing  allowance not to exceed 15% of gross sales;  and,

 

         (x)      Cost of goods.

 

         Fifty  percent  (50%) of  Interplay's  Net Online  Receipts (as defined

below) from all online  subscriptions giving access to the Game. For purposes of

this Agreement,  "Net Online  Receipts"  shall mean the gross receipts  actually

received  and  earned by  Interplay  from sales of online  subscriptions  giving

access to the Game, less the following amounts:

 

         (i)      Any applicable taxes on the sale of subscriptions to the Game;

 

         (ii)     Credit card chargebacks;

 

         (iii)    Any third party hosting fees that must be paid in  conjunction

                  with the maintenance of servers  allowing online access to the

                  Game;

 

         (iv)     Any third  party  customer  service  fees that must be paid in

                  conjunction with the subscriptions giving access to the game;

 

         (v)      Any third party billing fees that must be paid in  conjunction

                  with the  processing  of  subscriptions  giving  access to the

                  game;

 

         (vi)     Amounts for credits or refunds;

 

         (vii)    Currency exchange fees;

 

         (viii)   No royalties to be paid on accesses  furnished by Interplay on

                  a  so  called  "no  charge"  basis  as  demos  to  dealers  or

                  journalists;

 

         (ix)     Any  expenses  that must be  independently  paid to Majorem in

                  conjunction  with in-game  customer  service it is required to

                  supply.

 

Any deductible  expenses that are made to parties  related to Interplay (Such as

subsidiaries,  Major shareholders and others) will require Majorem's approval in

advance.

 

Following full  recoupment by Interplay of the Advance,  such Royalties shall be

paid  within  sixty days after the end of each of  Interplay's  fiscal  quarters

(January, April, July, October).  In-game customer-service expenses will be paid

in advance,  according to a quarterly  plan submitted by Majorem and approved by

Interplay at the product launch and then by the first day of each of Interplay's

fiscal quarters.

 

         Majorem  represents,  warrants and  covenants  from the date hereof and

throughout the term of this Agreement to Interplay, its successors, sublicensees

and assigns that the Game is or will be original to Majorem  and/or  exclusively

owned or licensed by Majorem outside  Taiwan;  that the Game does not violate or

infringe upon any rights (intellectual  property or other) of any third parties,

that Majorem has full legal right and  authority  to enter into this  Agreement;

and that the  execution  and  delivery  of this  Agreement  by Majorem  will not

violate or cause a breach of any other agreement to which it is a party.

 

         A party  hereto  shall be deemed to be in default of this  Agreement in

the event that party breaches any covenant,  representation or warranty it makes

in this Agreement or if any representation or warranty is or becomes untrue, and

such breach or untruth is material and not cured  within  thirty (30) days after

receipt  of